An OIC resolution sealed during the meeting urged "member states and the wider international community to ban products produced in or by illegal Israeli settlements from their markets."

However, the move was not binding on member states.

"Settlements" refer to Jewish communities in areas liberated by Israel in the 1967 Six Day War. While such towns have often been attacked by the international community, the 2012 Levy Report revealed that they are completely legal under international law.

Israeli Prime Minister Binyamin Netanyahu in November suspended diplomatic contacts with the European Union about the Israeli-Palestinian peace process over the bloc's controversial decision to label Jewish products from Judea, Samaria and the Golan Heights.

The suspension was ended last month when Netanyahu held talks with the EU's foreign policy chief.

At the end of Monday's summit, the OIC also pledged "full support to the political, diplomatic and legal efforts" to ensure the Palestinians achieved their "inalienable rights."

The Jakarta meeting was attended by leaders including Palestinian Authority (PA) Chairman Mahmoud Abbas and Sudanese President Omar al-Bashir, who is wanted for war crimes by the International Criminal Court.

It came amid a wave of Arab terror in Israel that has cost the lives of 33 Israelis since starting last September, urged along by statements from Abbas and incitement by his PA and Fatah faction.

Israeli-Palestinian peace talks collapsed in April 2014 when the PA torpedoed them by signing a unity deal with the Hamas terrorist organization.